The Top Three Tax-Related Challenges For Business Owners in 2016

If you are a business owner, 2016 probably isn’t the best year for you. As far as business owner taxes are concerned, apart from a few changes in taxation and legislation, the challenges remain almost the same as 2015, namely tax extenders and the Affordable Care Act. If your business employs a considerable number of people, there are a few things you will want to keep in mind this financial year:

New Data Requirements and Obamacare

The healthcare laws of 2016 now expand to include all businesses with about 51-99 prior-year employees. This will become a challenge for several small businesses, as it has been calculated that the cost of providing healthcare coverage to an individual will now be $5800 annually, as per Obamacare.

New Tax Extenders

The Congress is showing reluctance in acting upon the new tax extender legislation, leaving entrepreneurs stuck as they patiently wait for the parliament to reach an agreement. Last year, it took the President up till December 19 till he finally signed the tax legislation, and given the speed at which things are going, this year seems to be no better. The delay in tax legislation is making it hard for business owners to plan their taxes earlier, leaving them at the mercy of slow governmental procedures until a decision is reached.

Identity Theft

Identity theft is no longer a threat exclusive to consumers. Over the years, frauds have discovered that business identities enable them to claim business credits as well as deductions. Thus, they now increasingly target businesses rather than individuals. Thus, business owners of 2016 will have to keep an eye for business identity theft.

Read more great tips like these on my CPA blog.

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